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6.1. B. - Page 64
<br /> NOTE 2— CASH AND INVESTMENTS �CONTINUED)
<br /> As of June 30, 2011, the City had the following cash and investments available for operations:
<br /> Investment Maturities (in years)
<br /> Fair Value 1-2 Years 2-3 Years 3-4 Years
<br /> $ $ $ $
<br /> Demand Accounts at Banks 544,765 544,765
<br /> Certificates of Deposit 1,095,000 1,095,000
<br /> Petty Cash 11,500 11,500
<br /> County of San Mateo Investment Pool 20,093,050 20,093,050
<br /> California Local Agency Investment Fund 54,613,638 54,613,638
<br /> U.S. Agencies, Securities, and Corporate Notes:
<br /> Federal Home Loan Banl< 24,098,850 24,098,850
<br /> Federal National Mortgage Association 15,034,890 3,005,730 12,029,160
<br /> Federal Home Loan Mortgage Corporation 21,032,100 3,007,350 9,005,670 9,019,080
<br /> Federal Farm Credit 6,018,180 6,018,180
<br /> TOTAL 142,541,973 79,365,303 12,011,400 51,165,270
<br /> Credit Risk — Defined as the risk of loss of value of an investment due to a downgrade of its rating or the
<br /> failure or impairment of its issuer. Credit Risk shall be mitigated by investing in investment grade
<br /> securities and by diversifying the investment portfolio so that failure of any one issue does not unduly
<br /> harm the City's capital base and cash flow. In order to limit loss exposure due to Credit Risk, the
<br /> investment policy limits purchases of commercial paper investments to those rated A-1 by Standard and
<br /> Poor's or P-1 by Moody's Investor's Service, and corporate bonds to those rated A or better by Standard
<br /> and Poor's or Moody's Investor's Service.
<br /> Under the provisions of the City's investment policy, and in accordance with California Government Code,
<br /> the following investments are authorized:
<br /> Maximum Maximum
<br /> Maximum Percentage of Investment in
<br /> Authorized Investment Type Maturity Portfolio One Issuer
<br /> Certificates of Deposit 1 year 7.50% $3Million
<br /> Banker's acceptances 180 days No limit $3Million
<br /> Treasury Bills, Notes and Bonds 3 years No limit No limit
<br /> Government Agency Securities 3 years No limit No limit
<br /> Commercial Paper 15 days No limit $1Million
<br /> Local Agency Investment Fund N/A No limit $40Million
<br /> Passbook Savings Accounts 1 year No limit $100,000
<br /> San Mateo County Investment Fund N/A No limit $40Million
<br /> Money Market/Mutual Funds N/A 10% No limit
<br /> Corporate Notes 3 years 30% $SMillion
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